Powell's Jackson Hole Speech and FED Rate Cut Expectations to Drive Global Bond Markets This Week

Weekly Market Highlights:

1. The 10 year 2034 G-sec yield was stable at 6.87% over the week.
2. Weekly Gsec auction cut-off for the 2031, 2039 and 2073 stood at 6.8596%, 6.9571% and 7.0665% respectively.
3. 3M and 6M T-bill auction data yields were at 6.6152% and 6.7282% respectively, down by 2 bps on a weekly basis.
4. Indian G-sec yields may ease over the week as global inflation data shows signs of cooling, with crude oil trading below USD 80 and the Fed likely to cut rates in its September policy meeting.
5. India's July CPI inflation was below the RBI target as it saw a sharp decline to 3.54%, lowest in 59 months. This can be attributed to the base effect which will wear down in the next quarter. Core CPI was at 3%.
6. The INR Bonds high yield Index stood at 9.698% down 5 bps biweekly basis.
7. Gold reached all-time highs as investors sought a safe haven amid the war in the Middle East, U.S. economic data and fed rate cut.
8. Crude oil fell with demand concerns from top consumer China as it is facing a slowdown in growth and rise in unemployment.
9. The US 10Y TRES was down 22 bps as US inflation came in at 2.9% lowest since March 2021 and below the forecast of 3%.
10. Fed chairman Powell’s speech at Jackson Hole and the FED policy meeting minutes to drive the global bond markets this week.